Global chip stocks react as TSMC revenue surges on soaring AI demand

Published 09/10/2025, 10:56
© Reuters

Investing.com -- European chip equipment stocks rose on Thursday after Taiwan Semiconductor Manufacturing Co. reported a sharp increase in third-quarter revenue driven by strong demand for artificial intelligence chips.

ASML, ASM International, BE Semiconductor, VAT Group and Siltronic advanced between 0.4% and 3.4% at 05:55 ET (10: 55 GMT).

In the United States, TSMC suppliers Applied Materials, KLA and Lam Research slipped between 0.1% and 0.6% in premarket trade.

TSMC, the world’s largest contract chipmaker, said September revenue grew 31.4% from a year earlier to T$330.98 billion ($10.84 billion). 

Revenue fell 1.4% from August but still set up a positive third quarter, with total revenue of T$989.92 billion ($32.48 billion), up from T$759.69 billion a year earlier. 

The figure exceeded Reuters estimates of T$973.26 billion and was near the midpoint of the company’s guidance range of $31.8 billion to $33 billion issued in July.

The company has reported years of earnings growth as demand for advanced semiconductors used in artificial intelligence has expanded.

TSMC supplies major technology companies including Nvidia Corp. and Apple Inc. Rising demand for server and data center components has offset weaker sales of chips used in consumer electronics.

TSMC’s Taipei-listed shares have gained about 35% so far in 2025, reaching record highs in recent sessions amid sustained growth in AI-related production. 

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